Human Capital Efficiency and Corporate Performance: The Nigerian Perspective

Abstract

The paper provides evidence of the impact of Human Capital Efficiency on Corporate Performance of industrial goods companies listed in the Nigerian Stock Exchange Market. For a period of 6 years (2009-2014,) the effect of Human Capital Efficiency on Performance was examined by applying the Human Capital component of the Value Added Intellectual Coefficient (VAIC) methodology. Multiple Linear regression models were used for analyzing the relationship between the variables of interest; Employees' growth (EG), Earnings per Share (EPS), Return on Assets (ROA), Human Capital Efficiency (HCE), lagged Human Capital Efficiency and Size of the firms. The finding survived a number of robustness check and the result indicates that there is positive significant relationship between Human Capital Efficiency on ROA and EPS, and an insignificant negative relationship between Human Capital Efficiency on Size, lagged Human Capital Efficiency and Number of Employee Growth. This study contributes to the existing Human Capital theories by revealing the HCE of Industrial goods companies and its impact on Corporate Performance.